A sharp jump in corporate earnings and the outlook for more growth is a key factor behind the move in the S&P 500 to record highs.

Earnings revisions for 2026 have been steadily moving higher since the start of the year, which is a break from the traditional path of current year revisions that typically drifts lower.

The first quarter growth rate in earnings is tracking around 27% following earnings from several of the “Mag 7” companies. If it holds, that would be the highest quarterly growth rate since the fourth quarter of 2021.

Looking ahead, current estimates point to about 20% or better year-over-year earnings growth for every quarter in 2026.